This is a question i had for a long time,ive seen majority of traders buy and trade crypto through USDT,they just blindly trust it ,as its purpose is that of a stable coin ,i.e. basically a crypto replacement for USD($).
But what if the company behind USDT decides to cheat its holders,is there any way we can find out before a complete disaster? (for e.g. they start minting more coins unnecessarily)
is there any safety mechanism or a red flag indicator before its too late?
The main questions regarding USDT are wether it has declared collateral and how it releases new stablecoins. There were a lot of audits, but these questions are still unsolved. People continue using it, because it is the most convenient option. It is supported by all blockchains, most altcoins have pairs with it. Nevertheless, if you need to store your money in stable coins, you should pick up a basket a stable coins.